Labor shortage and retention will drive investment in AI/ML technology

The new survey reveals that competition for labor among third-party
logistics (3PL) providers and retailers is unprecedented. 72% of
respondents in logistics and 66% in retail, manufacturers and
distributors indicated that they have suffered labor-related disruptions
to their operations in the past 24 months. In all sectors, the
overwhelming response to mitigate this risk is through training and
adoption of technology.

“The labor shortage is especially challenging in the trucking industry
because of the lack of drivers and alternate infrastructure,” said
ElMarie Hugo, senior director, Industry Strategy, JDA. “We expect to see
an acceleration in the speed of adoption of AI and autonomous vehicles.
Companies are already placing their orders for autonomous vehicles,
which has in turn sparked competition among the manufacturers, like
Tesla, OTTO and Mercedes-Benz, who are all raising the stakes in this
‘futuristic reality.’”

As supply chains become increasingly global and complex, all three
groups surveyed are turning to data sharing collaboration to increase
visibility. Most respondents, including 88% of logistics providers, 87
percent of retailers, manufacturers and distributors and 74 percent of
technology providers, identified visibility as the biggest reason for
such collaboration.

“It is no longer enough to be reactive to events that disrupt supply
chains,” said Nicholas Stylianou, Project Director, eft. “New tools,
leveraging the power of AI and ML can now predict disruptive events as
far as four plus weeks into the future. Players who fail to adopt this
technology will find themselves trapped in a data ice age as customers
seek out partners with superior predictive capabilities embedded in
their solution platforms.”

JDA and EFT are at the 3PL & Supply Chain Summit in Atlanta, June 10-12,
in booth #13 where attendees can access the 2019 Global Logistics
Report. JDA will also be showcasing its moonshot – the Autonomous Supply
Chain!

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name “JDA” is a trademark and/or property of JDA Software Group, Inc.